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I was heavy long from Friday coming into today. I sold everything at and before the morning window at Rydex which is 10:45. I took in gains of near 3.8% in the 2x funds on average with my $RUT, $NDX, $SPX spread.

I also dumped all my call positions making money on LVS, XLK, GOOG, FITB, QQQQ, DIS, JCP, F, and XOM was a loss. All in all a great morning.

Later in the day I made two oversized SPY call trades that cut into my option trading account gains. That blew. As I was positioned correctly and would’ve made money on it had I just sat tight rather than being a nervous wuss.

At the close I went 50% long the RUT, long FAS, and SHORT TZA. I’m still expecting an up move. Tomorrow could be a big day and today might have been a setup. Here is what I mean by that. Today locked in the bears into thinking they can short the highs of the day and that any rally will get sold off. That psychology is locked in because bears are single minded anyways and can’t get off that one thought that the world is ending. Secondly, this continuous shorting will fuel the short squeeze throughout the day thus causing a giant green candle. Third, oversold conditions persist, and now we have some positive divergences blooming in some indicators. Fourth, the market likes to screw people over.

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